Implementing the agreement in the free trade zone between Iran and the EAEU will boost trade and economic cooperation between Tehran and the Union member states, Iran’s Foreign Ministry spokesman Esmail Bhagihai told Ria Novosti on Monday.
According to Press TV, Russian Deputy Prime Minister Alexei Oberchuk said in late March that Iran and the EAEU will begin implementing a Free Trade Agreement (FTA) on May 15th.
“The implementation of this agreement between Iran and EAEU member states will result in a significant increase in trade and economic exchanges between Iran and the five countries,” Bagaei said.
He added that Iran is keen to take advantage of every opportunity to increase the effectiveness of the potential of each union’s member states.
An Iranian spokesman pointed out that Iran has great significance for the EAEU, including Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.
The EAEU serves as a foundation for strengthening economic and commercial ties between Tehran and its union member states.
Iran and the EAEU signed an agreement in St. Petersburg on December 25, 2023. Its aim is to promote and streamline trade between EAEU countries and Iran by reducing or eliminating tariff and non-tariff obstacles and promoting economic and commercial cooperation.
The agreement allows Iran and EAEU members to zero export and import duties for approximately 87% of the traded goods. The remaining 13% of goods and goods transactions continue under the customs system.
According to the Russian Deputy Prime Minister, the Iranian E-A-Free Trade Zone agreement will allow Russian companies to save $300 million a year. It also opens more than 90% of the product category for trade between Iran and the Russian Federation, creating conditions favorable for trade growth.
Iran and the EAEU signed a three-year priority trade agreement (PTA) in 2019, about five years after Iran was invited to join the bloc.
The PTA allowed Iran to offer tariff reductions on 380 goods imported from EAEU countries, while also enjoying the same discount on 502 goods exported to the bloc.
Iran, which recently acquired an observer status in the EAEU, is looking to deepen its ties with the economic bloc.
MNA